Page 23 - DMGT205_SALES_MANAGEMENT

Unit 2: Personal Selling

Cultivation Notes

Personal selling permits plenty of relationships to spring up, ranging from a matter-of-fact
selling relationship to deep personal friendship. Effective sales representatives will normally
keep their customers best interest at heart if they want to maintain long term relationship.
Response

Personal selling puts the buyer under some obligation for having listened to the sales talk. The
buyer has the greater need to attend and respond, even if the response is a polite "thank you".
These distinctive qualities come at a cost. A sales force represents a greater long term cost
commitment than advertising. Advertising can be turned on and off, but the size of sales force is
much difficult to alter.

Advantages

Following are the advantages of personal selling because of which it is the most commonly used
promotion tool:
1. Ability to close sales.
2. Ability to hold customer attention.

3. Immediate feedback and two-way communication.
4. Presentation is tailored to individual needs.
5. Ability to target customer precisely.
6. Ability to cultivate relationship.

7. Ability to get immediate action.
Disadvantages

Despite all these advantages of personal selling, it is not without disadvantages because of
which sometimes companies may hesitate to adopt personal selling as a promotion tool.

1. High cost per contact.
2. Inability to reach some customers effectively.

Example: A good example of personal selling is found in department stores on the
perfume and cosmetic counters. A customer can get advice on how to apply the product and can
try different products. Products with relatively high prices, or with complex features, are often
sold using personal selling. Great examples include cars, office equipment (e.g. photocopiers)
and many products that are sold by businesses to other industrial customers.
2.2 Situations Conducive to Personal Selling

Product Situation

1. When a product is of high unit value, e.g., refrigerator, TV, etc.
2. When a product is in the introductory stage of its PLC.

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